Business Analysis of Quest Diagnostics

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Quest Diagnostics

QUEST DIAGNOSTICS

Business Overview

Quest Diagnostics Incorporated provides diagnostic testing information and services in the United States and internationally. The company's Diagnostic Information Services business segment develops and delivers diagnostic testing information and services, such as routine testing, gene-based and esoteric testing, and drugs-of-abuse testing, as well as anatomic pathology services, and related services and insights. This segment offers diagnostic information services primarily under the Quest Diagnostics brand, as well as under the AmeriPath, Dermpath Diagnostics, Focus Diagnostics, Athena Diagnostics, ExamOne, Quanum, and Care360 brands to patients, clinicians, hospitals, integrated delivery networks, health plans, employers, and accountable care organizations through a network of laboratories, patient service centers, and phlebotomists in physician offices. Its Diagnostic Solutions segment offers risk assessment services for the life insurance industry; and health information technology solutions for healthcare organizations and clinicians. Quest Diagnostics Incorporated was founded in 1967 and is headquartered in Madison, New Jersey.

Quest Diagnostics

Quest Diagnostics


R&P Rank: 367
Sector: Life Sciences
Industry:Diagnostics & Scientific Instruments
H.Q Location:New Jersey
Website: www.questdiagnostics.com
Company Address:
3 GIRALDA FARMS, MADISON NJ 07940
Ph:973-520-2700

Business Analysis of Quest Diagnostics

The Life Sciences Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Quest Diagnostics compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Quest Diagnostics to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Quest Diagnostics with an interactive chart.

  1. Revenue Growth: Quest Diagnostics reported a revenue growth of 0.3% year-on-year during 2016. Diagnostics & Scientific Instruments Industry grew at 6.8% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Quest Diagnostics spent 61.4% of its total revenues on COGS. Diagnostics & Scientific Instruments industry average (COGS share of revenue) in the same period was 49.6%
  3. R&D share of Revenues: Quest Diagnostics R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Quest Diagnostics spent 22.4% of its total revenues on Sales, Marketing, and General Administration (SG&A). Diagnostics & Scientific Instruments industry average SG&A spending in the same period was 28.0%
  5. Inventory share of Revenues: As a percentage of revenue, Quest Diagnostics spent 1.1% of its total revenues on Inventories. Diagnostics & Scientific Instruments industry average Inventory spending in the same period was 10.1%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Quest Diagnostics invested 13.0% of its total revenues on Accounts Payable (A/P) Diagnostics & Scientific Instruments industry average Accounts Payable investment in the same period was 6.5%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Quest Diagnostics invested 12.3% of its total revenues on Accounts Receivable (A/R). Diagnostics & Scientific Instruments industry average Accounts Receivable investment in the same period was 16.1%
  8. PP&E share of Revenues: As a percentage of revenue, Quest Diagnostics invested 13.7% of its total revenues on Property, Plants, and Equipments (PP&E). Diagnostics & Scientific Instruments industry average PPE investment in the same period was 15.9%
  9. Intangibles share of Revenues: As a percentage of revenue, Quest Diagnostics invested 92.5% of its total revenues on Intangibles. Diagnostics & Scientific Instruments industry average Intangibles investment in the same period was 122.0%
  10. Net Margins: Quest Diagnostics Net Margins in the year 2016 were 8.6%. Diagnostics & Scientific Instruments industry average Net Margins in the same period were 10.7%

Sector and Industry Association of Quest Diagnostics

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Quest Diagnostics is associated with Healthcare Sector Group, Life Sciences Sector, and Diagnostics & Scientific Instruments Industry.

Life Sciences sector is comprised of the following industries: Pharmaceuticals; Medical Devices; Biotechnology; Diagnostics & Scientific Instruments. The definitions for each of the industries is as follows:

  • Pharmaceuticals industry includes companies that discover, develop, manufacture, and market medicines licensed for use as medications. In general these companies offer pharmaceutical products that can be described as prescription or over-the-counter medicines. Many Pharmaceutical companies also offer a diverse portfolio of animal health products, services and solutions. Many diversified pharmaceutical companies operate in more than two operating segments like consumer health products, medical devices and pharmaceutical.
  • Medical Devices industry includes manufacturers and distributors of medical equipments and medical supplies. Medical equipments include large scale capital equipmets such as X-Ray machines and MRI scanners and other nondisposable medical devices like stents and pacemakers. Medical supplies include makers of contact lenses, eyeglass lenses, bandages and other disposable products.
  • Biotechnology industry includes Biotechnology product companies, subscription companies, and service companies. Biotechnology product companies offer pharmaceutical drug products that are manufactured in, extracted from, or semi synthesized from biological sources. Subscription-based companies develop genome databases, which can be used to develop medicinal drugs. Service companies offer solutions based on a common technology or generic tool of other large pharmaceutical or biopharmaceutical companies.
  • Diagnostics & Scientific Instruments industry includes companies that provide testing products, diagnostic reagents, instruments and diagnostic services to aid in the detection and treatment of a wide range of diseases. It also includes molecular diagnostic and genetic testing companies that develop, manufacture, market and provide diagnostic tests, diagnostic systems and related products and services. Also included are companies that manufacture and market analytical instruments, equipment, reagents and consumables, software and services for research, manufacturing, analysis, discovery and diagnostics.

Industry Ranking of Quest Diagnostics

With $7.5 billion revenues, Quest Diagnostics ranked number 2 of all the companies in the US Diagnostics & Scientific Instruments industry. There were a total of 22 public companies in the US Diagnostics & Scientific Instruments industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Diagnostics & Scientific Instruments industry by revenues during 2016 were:

  1. Thermo Fisher Scientific ($18.3 billion)
  2. Quest Diagnostics ($7.5 billion)
  3. Agilent Technologies ($4.2 billion)
  4. Hologic ($2.8 billion)
  5. Mettler Toledo ($2.5 billion)
  6. Illumina ($2.4 billion)
  7. Waters ($2.2 billion)
  8. PerkinElmer ($2.1 billion)
  9. Bio-Rad ($2.1 billion)
  10. OPKO Health ($1.2 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Quest Diagnosticsand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of quest-diagnostics

Thermo Fisher Scientific (TMO) Business Analysis – Analyze Historical Performance, Strategic...

Thermo Fisher Scientific Inc. with $18 billion revenues in the year 2016 was the number 1 Diagnostics & Scientific Instruments company. Read this report to know the top competitors of Thermo Fisher Scientific and identify growth and cost optimization opportunities of Thermo Fisher Scientific

Agilent Technologies (A) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Agilent Technologies Inc with $4 billion revenues in the year 2016 was the number 3 Diagnostics & Scientific Instruments company. Read this report to know the top competitors of Agilent Technologies and identify growth and cost optimization opportunities of Agilent Technologies

Hologic (HOLX) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Hologic Inc with $3 billion revenues in the year 2016 was the number 4 Diagnostics & Scientific Instruments company. Read this report to know the top competitors of Hologic and identify growth and cost optimization opportunities of Hologic

Mettler Toledo (MTD) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Mettler Toledo International Inc with $3 billion revenues in the year 2016 was the number 5 Diagnostics & Scientific Instruments company. Read this report to know the top competitors of Mettler Toledo and identify growth and cost optimization opportunities of Mettler Toledo

Illumina (ILMN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Illumina Inc with $2 billion revenues in the year 2016 was the number 6 Diagnostics & Scientific Instruments company. Read this report to know the top competitors of Illumina and identify growth and cost optimization opportunities of Illumina

Waters (WAT) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Waters Corp with $2 billion revenues in the year 2016 was the number 7 Diagnostics & Scientific Instruments company. Read this report to know the top competitors of Waters and identify growth and cost optimization opportunities of Waters

Revenues Analysis

Quest Diagnostics (DGX) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Quest Diagnostics Inc (DGX) from 2012 to 2016. Quest Diagnostics generated a total of $7.5 billion revenues during 2016. Quest Diagnostics reported a revenue growth of 0.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Quest Diagnostics (DGX) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Quest Diagnostics Inc (DGX) from 2002 to 2016. Quest Diagnostics generated a total of $7.5 billion revenues during 2016. Quest Diagnostics reported a revenue growth of 0.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Quest Diagnostics (DGX) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Quest Diagnostics Inc (DGX) revenue growth with Diagnostics & Scientific Instruments industry growth during the last five years from 2012 to 2016. Quest Diagnostics reported a revenue growth of 0.3% year-over-year during 2016. The Diagnostics & Scientific Instruments industry growth was 6.8% year-over-year during 2016. Quest Diagnostics growth was slower than the industry during 2016.